By Connor Hart

Shares of Daktronics fell after the company swung to a loss in its fiscal third quarter, warned that economic and geopolitical conditions may hurt future earnings, and said that its chief executive officer will step down.

The stock was down 15% to $12.13 in afternoon trading Wednesday. Thee shares fallen 36% in the past three months.

The sign company, which manufactures electronic scoreboards, display systems and large-screen video displays, earlier in the day posted a loss of $17.2 million for its three months ended Jan. 25, compared with a profit of $10.7 million in last year's comparable frame.

On a quarterly basis, Daktronics reported a loss of 36 cents a share. Analysts surveyed by FactSet expected per-share earnings of 6 cents.

Revenue fell 12% to $149.5 million, missing the $170.6 million that analysts modeled.

Chief Executive Reece Kurtenbach said the company notched an increase in commercial orders and a rebound in international orders during the recent quarter. It also secured what he called a major NFL stadium order, which boosted results.

Looking forward, the company warned that recent actions by the U.S. government, such as tariffs and federal funding priority changes, may hurt its near-term outlook.

"We have been seeing some delays in U.S.-based project bookings across markets," the company said. "Additionally, costs related to corporate governance matters and business transformation are expected to remain elevated in the fourth fiscal quarter."

Daktronics also appointed Brad Wiemann as interim chief executive. Kurtenbach will step down from the lead role and as chairman at the close of business on Wednesday. The company plans to employ an executive search firm to help identify a permanent CEO, it said. No reason for Kurtenbach's departure was given.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

March 05, 2025 14:16 ET (19:16 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.